Australia's State Gas completes A$8mn placement
Queensland-focused gas explorer State Gas has successfully completed an A$8mn ($5.84mn) placement, it said on September 24. The company will issue 25mn new shares at an issue price of A$0.32/share.
The funds will be used to start production testing at Rougemont-2 and undertake additional exploration drilling in the Rougemont coalbed methane fairway in its 100% owned ATP 2062. State Gas will also undertake further production testing at Nyanda 8 and Serocold 1 in the adjoining Reid's Dome project.
“The strong demand for this placement reflects the increasingly high prices for gas and support for the mission the company has embarked on to bring new supplies to the market in 2023,” Richard Cottee, executive chairman said. "The funds accepted will enable us to commence production testing at Rougemont and undertake further drilling, as well as complete the appraisal programme for Reid's Dome.”
The company said it is currently preparing for the next phase of work at the company's 100%-owned Rougemont and Reid's Dome gas projects.